THIRD QUARTER 2023 HIGHLIGHTS
- 3Q 2023 INVOICED SALES AMOUNTED TO €74.9 MILLION, REFLECTING A DECREASE OF 35.8% COMPARED TO 3Q 2022. THIS IS EQUIVALENT TO A DECREASE OF 15.2% COMPARED TO THE NORMALIZED SALES OF 3Q 2022, NET OF THE BACKLOG, WHICH WAS €28.3 MILLION. THE DECREASE OF 3Q 2023 INVOICED SALES IS OF 15.0% COMPARED TO 3Q 2019.
- 3Q 2023 BRANDED INVOICED SALES, WHILE BEING BELOW 3Q 2022, ARE UP 4.3% VS 3Q 2019. IN 3Q 2023, BRANDED SALES REPRESENTED 93.9% OF TOTAL BRANDED AND UNBRANDED SALES, COMPARED TO 90.9% IN 3Q 2022 AND 78.6% IN 3Q 2019.
- FROM WEEK 29 TO DATE, WRITTEN ORDERS SURPASSED RESULTS FROM THE SAME PERIOD IN 2022, TERMINATING A 15-MONTH SEQUENCE OF NEGATIVE COMPARISON. US MARKET IS LEADING THIS TRAJECTORY CHANGE.
- 3Q 2023 GROSS MARGIN OF 35.4% IS ABOVE THE LAST 3 YEARS AVG, AS A RESULT OF ENHANCED PRICING DISCIPLINE AND IMPROVED COST MANAGEMENT DESPITE THE NEGATIVE IMPACT FROM LOWER DELIVERED SALES.
- 3Q 2023 OPERATING LOSS OF (€1.3) MILLION COMPARES TO AN OPERATING PROFIT OF €4.1 MILLION IN 3Q 2022 WHEN WE REPORTED €116.6 MILLION OF REVENUE, AND AN OPERATING LOSS OF (€8.7) MILLION IN 3Q 2019 WHEN WE REPORTED €88.1 MILLION OF REVENUE.
- 3Q 2023 OPERATING ACTIVITIES GENERATED €2.3 MILLION IN CASH, WHICH COMPARES WITH (€4.2) MILLION OF OPERATING CASH USED IN 3Q 2022. IN 3Q 2023 WE INVESTED €2.9 MILLION OF WHICH €1.8 MILLION IN RETAIL AND €1.1 MILLION TO UPGRADE OUR ITALIAN FACTORIES.
- AS OF SEPTEMBER 30, 2023, WE HELD €37.1 MILLION IN CASH, COMPARED TO €44.5 MILLION OF CASH AS OF JUNE 30, 2023.
- IN THE CURRENT MARKET LANDSCAPE, PRIORITIZING COST AND CAPITAL EFFICIENCY IS KEY. WE CONTINUE TO FOCUS ON REDUCING FIXED COSTS AND ENHANCING WORKING CAPITAL AS WELL EXPLORING OPTIONS TO SELL NON-STRATEGIC ASSETS.
- WE EXPECT ONGOING CHALLENGES IN BOTH THE OVERALL ECONOMY AND THE FURNISHINGS SECTOR THROUGHOUT THE REMAINDER OF 2023 AND INTO THE EARLY PART OF THE FOLLOWING YEAR, WHICH MAY HAVE A POTENTIAL ADVERSE IMPACT ON OUR BUSINESS. NEVERTHELESS, WE MAINTAIN CONFIDENCE IN THE STRENGTH OF OUR BRANDS AND THE COMPANY’S LONG-TERM GROWTH STRATEGY.
